Fintech in Saudi Arabia refers to using new technologies in financial services. Saudi Arabian Monetary Authority (SAMA) launched Fintech Saudi in 2018 to promote the development of the Fintech industry.
The Fintech industry in Saudi Arabia is regulated by two key authorities: the Saudi Central Bank (formerly known as SAMA) and the Capital Marketing Authority (CMA). SAMA oversees various financial services, including banking, finance, insurance, credit bureaus, and payments. It regulates specific Fintech activities such as intelligent cash management and insurance regulation. On the other hand, CMA focuses on capital market-related activities, such as dealing, arranging, managing, advising, and custody of securities.
What is Fintech Saudi Arabia?
Fintech Saudi is an initiative of the Saudi government to develop the Fintech industry in the country. With a vision to create a Fintech Hub with a thriving ecosystem, it aims to support the development of related infrastructure, skills and knowledge.
The Saudi Arabian Fintech landscape is undergoing a significant transformation driven by the country’s young, tech-savvy population and robust digital infrastructure. The market’s evolution is closely aligned with Saudi Vision 2030’s financial sector development goals, which aim to create a cashless society and promote digital transformation.
The government’s goal is to support Fintech entrepreneurs at every stage of their development.
Today, Saudi Arabia is fast becoming a Fintech powerhouse led by a confluence of strategic vision, robust regulatory frameworks, and innovative initiatives, all of which play a vital role in the country’s economic diversification and financial inclusion.
What are the benefits of Fintech Saudi Arabia?
The development of the Fintech industry has led to several advantages.
- Fintech can make financial services more accessible and inclusive.
- Fintech can accelerate social economy transformation.
- Fintech can effectively address economic and societal issues like financial exclusion, especially of low-income groups and relatively meagre personal saving rates.
- FinTech startups were observed to solve many problems, either offering new services and products or providing customers with traditional services who did not have access to or could not work with banks and financial institutions.
Future of Saudi Fintech Startups
Saudi Arabia’s Vision 2030 has emphasized Fintech’s role in the national economy, setting ambitious targets, including establishing 525 Fintech companies, creating 18,000 jobs, and contributing SAR 13.3 billion to the GDP by 2030. One of the aims of Saudi Fintech is to increase the share of non-cash transactions among individuals to 70% by 2025.
A young population, full internet connectivity and a surge in digital literacy are key factors in establishing successful Fintech startups in Saudi Arabia. The Saudi market is witnessing rapid technological advancement, particularly in integrating artificial intelligence and data analytics within financial services technology.
As the Kingdom is moving ahead with its Vision 2030 agenda, focusing heavily on digital innovation, Fintech opportunities in Saudi Arabia are growing daily. The Central Bank of Saudi Arabia (SAMA) has been instrumental in this development, approving comprehensive regulations and setting the stage for regulated activities within the Fintech sector. This is an opportune time to start a fintech company in Saudi Arabia and enter the lucrative Fintech market in the Kingdom.
What are the challenges of Fintech in Saudi Arabia?
There are several perceived challenges in developing Fintech industries in Saudi Arabia. They are:
- Existing regulations are challenging to the market.
- Regulators need to be ready for the market.
- Given the difficulties in approaching several government entities to get the licenses, there is a need to streamline the process of obtaining different licenses.
Obtaining professional consulting agencies like Helpline Group in Saudi Arabia will be advisable to navigate the Fintech industry sector for successful business set-up.
How can Helpline Group in Saudi Arabia help?
Helpline Group, backed by a team of over 300+ qualified members and 25 years of experience, is a professional consulting agency operating in more than 10 branches worldwide. We specialize in company formation and have all the necessary registrations and approvals in countries like Saudi Arabia, Qatar, etc.
The Group takes pride in offering seamless and quality services to meet all your requirements of investing in Fintech companies in Saudi Arabia. We assure you of our services at any time.
